India imposed a windfall tax on diesel and aviation turbine fuel exports on June 16, 2026, through a Special Additional Excise Duty, while leaving petrol exports outside the new levy.
The government said the measure was aimed at ensuring adequate domestic supply of transportation and aviation fuels during a period when global price differentials had made exports more attractive than serving the home market.
Refinery operators said the levy would reshape their export economics and called for clarity on review timelines, as windfall tax rates in India have historically been adjusted frequently to reflect changing international prices.
The exclusion of petrol from the duty prompted questions about the criteria driving the selectivity. Analysts noted that diesel and jet fuel represent a larger share of institutionally sensitive consumption, including freight transport and commercial aviation, making supply security concerns more acute for those grades.
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